Elizabeth Warren and other senators pressure Texas on cryptocurrency mining in the state

US senators demand clarification from Texas regarding cryptocurrency mining in the state.

Elizabeth Warren and six other Democratic senators are demanding that the Texas energy regulator figure out how much the cryptocurrency mining industry is putting a strain on the state’s power grid and find out its exact impact on climate change.

US senators demand clarification from Texas

In a letter sent to the Electricity Reliability Council of Texas (ERCOT), the senators elaborate that “cryptocurrency mining companies are invading states like Texas” and ask questions about the industry’s impact on the Texas power grid. already in a very delicate position during the strongest storms and other periods of high demand. “The Texas network is especially vulnerable in that it is the only independent government network in the country and is not interconnected with any other – that is, it has no buffers in case of a shortage of production,” we read.

about cryptocurrency mining in the state

Senators are also concerned about the payments that mining companies receive from ERCOT when demand is very high. “To put it simply, bitcoin miners make money from mining, which puts a lot of pressure on the power grid: and during this high demand, when the profitability of ongoing mining declines, they then receive subsidies in the form of payments when they suspend their mining operations. and do nothing,” the letter explains. “These subsidies to cryptocurrency miners are also contributing to exacerbate the climate crisis. The energy used to mine bitcoin and ethereum in 2021 resulted in the emission of almost 80 million tons of carbon dioxide.

The letter asks for detailed information on the amount of energy consumed by cryptocurrency mining companies over the past five years. Senators would also like to know if the increase in electricity consumption coincides with the arrival of cryptocurrency miners in the state.